Author:  Andrea Miller

Reviewed By: Catherine Braxton

Assisted living costs increase per year by an average of about 4%. Based on this inflation rate, monthly room and board at an assisted living community could rise to $5,264 in 2025, compared to an average rate of $5,062 in 2024.

How much will assisted living cost in the future?

Assisted living will cost about $6,159 in 2029 and about $7,493 in 2034 at the current inflation rate. By 2044, the estimated monthly room and board increases to more than $11,000. 

How do families pay for assisted living?

Families often use a combination of methods to pay for assisted living for a loved one. Many people use life insurance benefits toward this expense. Depending on the type of policy your family member has, you may be able to convert, sell or cash out part of the value to pay for long-term care. Also, purchase long-term care insurance if you think you or a loved one may need assisted living in the future. If you or your family member owns a home, selling the property, renting it out or getting a reverse mortgage will help cover assisted living costs.

Are government benefits available to pay for assisted living?

Several government benefit programs are available to help pay for assisted living. Some veterans qualify for federal help with these costs. You or your loved one should apply if you have disabilities or injuries related to military service. Veterans who have any disability and fall below a certain income level qualify for assisted living benefits through the Aid and Attendance program.

Medicaid waiver programs in many states also pay part of the cost of assisted living. Your loved one qualifies if they have a lower-than-average income or a disability. The exact eligibility requirements vary by state, however, so learn more from your local Area Agency on Aging.